Special Economic Zone (SEZ)_SONIA

7/31/2019 Special Economic Zone (SEZ)_SONIA

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Special Economic Zone (SEZ)

SWOT Analysis

Made By-

SONIA MEHTA

PGD11106


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History of SEZ

India was one of the first in Asia to

recognize the effectiveness of the Export

Processing Zone (EPZ) model in promoting

exports, with Asia's first EPZ set up in

Kandla in 1965.

With the same intentions and view to attract

larger foreign investments in India, the

Special Economic Zones (SEZs) Policy was

announced in April 2000.


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SEZ ?

A Special Economic Zone is a

geographically bound zones where the

economic laws in matters related to export

and import are more broadminded and

liberal as compared to rest parts of the

country. SEZs are projected as duty free

area for the purpose of trade, operations,

duty and tariffs. SEZ units are self-

contained and integrated having their owninfrastructure and support services


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OBJECTIVE of the SEZ Act

Generation of additional economic activity

Promotion of exports of goods and services

Promotion of investment from domesticand foreign sources

Creation of employment opportunities

Development of infrastructure facilities


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List of Developerswho have set up SEZs

Nokia SEZ in Tamil Nadu

Quark City SEZ in Chandigarh

Flextronics SEZ in Tamil Nadu

Mahindra World City in Tamil Nadu Motorola, DELL and Foxconn

Apache SEZ (Adidas Group) in Andhra

Pradesh

Divvy's Laboratories, Andhra Pradesh

Rajiv Gandhi Technology Park, Chandigarh

ETL Infrastructure IT SEZ, Chennai

Hyderabad Gems Limited, Hyderabad


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SWOT Analysis for Indian SEZs

Strengths

A large and growing domestic market.

Growing middle class with purchasepower

Indias large English speakingworkforce


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Strengths

Relatively low labour costs

Worldwide acceptance of capabilities infields like:

1. Pharmaceutical manufacturing &research

2. Clinical trials

3. Manufacturing auto parts

4. Engineering designing & consultancy,IT

5. Entertainment


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Weaknesses

Inadequate institutional support

Labour reforms

Inappropriate locations Infrastructure bottlenecks

connecting infrastructure like

Roads leading to SEZs. Political changes


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Opportunities

To use SEZs to catalyze infrastructuredevelopment.

New small ports & airports are alsobeing developed keeping SEZ conceptin mind.

Realistically establish competitiveadvantages in SEZs.


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A large NRI base who have traditionallyinvested less in Greenfielddevelopment in India.

Lower the high transaction /behind theborder costs to exporters.

Tap the advantages of WTO/increaseIndias small share of world trade.


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Opportunities

To increase investments in core strengthareas like IT and software products and

services.

An alternative manufacturing base,particularly compared to Chinese SEZs.


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Threats

Loosing edge of low labour costs -many countries are competing.

The pattern of buying & selling may notcontinue. With relocations of industriesin other third world countries, new

competitors will emerge.


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CONCLUSION

It is expected that this will trigger alarge flow of foreign and domestic

investment in SEZs, in infrastructure

and productive capacity, leading to

generation of additional economicactivity and creation of employment

opportunities.


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THANK YOU

Documents

Special Economic Zone (SEZ)_SONIA